Eleanor Finch
The Florida homestead exemption is available to an individual who holds beneficial title to property under an instrument granting such individual a life estate. This is the case even if the interest is granted by an entity that does not qualify for the homestead exemption. The homestead exemption is based on the person seeking the exemption, not the entity granting the life estate. The Florida Statutes provide that a person who otherwise qualifies by the required residence for the homestead tax exemption shall be entitled to such exemption where the person's possessory right in such real property is based upon an instrument granting to him or her a beneficial interest for life.
| Characteristics | Values |
|---|---|
| Who is entitled to the homestead exemption? | The person seeking the exemption |
| Who is not entitled to the homestead exemption? | The entity granting the life estate |
| Who is not qualified for the homestead tax exemption? | A corporate entity of a type not enumerated under section 196.031 or section 196.041, Florida Statutes, which holds title to residential real property |
| Who is entitled to the homestead tax exemption? | A person who otherwise qualifies by the required residence for the homestead tax exemption |
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What You'll Learn
Trust beneficiaries and life estates
Trust beneficiaries who are specifically granted a life estate in real property by the trust may qualify for the Florida homestead exemption. This is because the statute bases entitlement to the homestead exemption on the person seeking the exemption, not on the entity granting the life estate.
The homestead exemption is available to an individual who holds beneficial title to property under an instrument granting such individual a life estate, even if the interest is granted by an entity that does not qualify for the homestead exemption.
Section 196.041, Florida Statutes, delineates those holding equitable title to homestead property who may claim a homestead exemption. Subsection (2) of the statute provides:
> A person who otherwise qualifies by the required residence for the homestead tax exemption provided in s. 196.031 shall be entitled to such exemption where the person's possessory right in such real property is based upon an instrument granting to him or her a beneficial interest for life, such interest being hereby declared to be "equitable title to real estate," as that term is employed in s. 6, Art. VII of the State Constitution; and such person shall be entitled to the homestead tax exemption irrespective of whether such interest was created prior or subsequent to the effective date of this act..
In reaching this conclusion, the Attorney General's office relied on earlier opinions and the decision by the Fourth District Court of Appeal in *Prewitt Management Corporation v. Nikolits*. The court held that a corporate entity of a type not enumerated under section 196.031 or section 196.041, Florida Statutes, which holds title to residential real property, is not qualified for the homestead tax exemption under Article VII, section 6 of the Florida Constitution.
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Homestead tax exemption
The homestead exemption is available to an individual who holds beneficial title to property under an instrument granting such individual a life estate, even if the interest is granted by an entity that does not qualify for the homestead exemption. This is based on the provisions of section 196.041(2) of the Florida Statutes.
The statute bases entitlement to the homestead exemption on the person seeking the exemption, not on the entity granting the life estate. This means that a trust beneficiary specifically granted a life estate in real property by the trust may qualify for the homestead exemption.
The property appraiser may request the applicant to provide additional ownership documents to establish title. Subsection (2) of the statute provides: "A person who otherwise qualifies by the required residence for the homestead tax exemption provided in s. 196.031 shall be entitled to such exemption where the person's possessory right in such real property is based upon an instrument granting to him or her a beneficial interest for life, such interest being hereby declared to be 'equitable title to real estate,' as that term is employed in s. 6, Art. VII of the State Constitution; and such person shall be entitled to the homestead tax exemption irrespective of whether such interest was created prior or subsequent to the effective date of this act."
However, it is important to note that a corporate entity of a type not enumerated under section 196.031 or section 196.041, Florida Statutes, which holds title to residential real property, is not qualified for the homestead tax exemption under Article VII, section 6 of the Florida Constitution.
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Corporate entities and homestead exemption
A homestead exemption is a legal provision that shields a home from some creditors following the death of a homeowner’s spouse or the declaration of bankruptcy and minimises property taxes for homeowners. The exemption can help protect a home from creditors or during bankruptcy. The exemption only applies to one’s primary residence. Most states have homestead exemptions, but the rules and protection limits vary.
In Florida, a trust beneficiary specifically granted a life estate in real property by the trust may qualify for the homestead exemption. The statute bases entitlement to the homestead exemption on the person seeking the exemption, not on the entity granting the life estate.
In the case of *Prewitt Management Corporation v. Nikolits*, the court held that a corporate entity of a type not enumerated under section 196.031 or section 196.041, Florida Statutes, which holds title to residential real property, is not qualified for the homestead tax exemption under Article VII, section 6 of the Florida Constitution.
In other words, the homestead exemption is available to an individual who holds beneficial title to property under an instrument granting such individual a life estate even though such interest is granted by an entity that does not qualify for the homestead exemption.
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Homestead exemption and the Fourth District Court of Appeal
The homestead exemption is available to an individual who holds beneficial title to property under an instrument granting such individual a life estate. This is the case even if the interest is granted by an entity that does not qualify for the homestead exemption.
In the case of Prewitt Management Corporation v. Nikolits, the Fourth District Court of Appeal held that a corporate entity of a type not enumerated under section 196.031 or section 196.041, Florida Statutes, which holds title to residential real property, is not qualified for the homestead tax exemption under Article VII, section 6 of the Florida Constitution.
Attorney General Opinion 04-45 considered whether partners in a Colorado general partnership, which held title to residential real property, were entitled to the homestead tax exemption. The opinion concluded that the partners were not entitled to the exemption because the partnership was not a type of entity enumerated under section 196.031 or section 196.041, Florida Statutes.
Section 196.041, Florida Statutes, delineates those holding equitable title to homestead property who may claim a homestead exemption. Subsection (2) of the statute provides that a person who otherwise qualifies by the required residence for the homestead tax exemption shall be entitled to such exemption where the person's possessory right in such real property is based upon an instrument granting to him or her a beneficial interest for life.
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Homestead exemption and the Florida Constitution
The homestead exemption is available to an individual who holds beneficial title to property under an instrument granting such individual a life estate. This is the case even if the interest is granted by an entity that does not qualify for the homestead exemption.
The homestead exemption is based on the person seeking the exemption, not the entity granting the life estate.
Section 196.041(2) of the Florida Statutes states that a trust beneficiary specifically granted a life estate in real property by the trust may qualify for the homestead exemption.
The Fourth District Court of Appeal in Prewitt Management Corporation v. Nikolits held that a corporate entity of a type not enumerated under section 196.031 or section 196.041, Florida Statutes, which holds title to residential real property, is not qualified for the homestead tax exemption under Article VII, section 6 of the Florida Constitution.
Section 196.041, Florida Statutes, delineates those holding equitable title to homestead property who may claim a homestead exemption. Subsection (2) of the statute provides: "A person who otherwise qualifies by the required residence for the homestead tax exemption provided in s. 196.031 shall be entitled to such exemption where the person's possessory right in such real property is based upon an instrument granting to him or her a beneficial interest for life, such interest being hereby declared to be 'equitable title to real estate,' as that term is employed in s. 6, Art. VII of the State Constitution; and such person shall be entitled to the homestead tax exemption irrespective of whether such interest was created prior or subsequent to the effective date of this act."
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Frequently asked questions
The homestead exemption is a tax exemption available to individuals who hold beneficial title to property under an instrument granting them a life estate.
According to Florida Statutes, a person who otherwise qualifies by the required residence for the homestead tax exemption shall be entitled to such exemption where the person's possessory right in such real property is based upon an instrument granting to them a beneficial interest for life.
Yes, a trust beneficiary specifically granted a life estate in real property by the trust may qualify for the homestead exemption.
